Illinois colleges drop to junk status rating

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 ILLINOIS (WAND) – Credit ratings for seven Illinois colleges have dropped.

Moody’s Investors Service bumped Northern Illinois University, Eastern Illinois University, Southern Illinois University, Governors State University and Northeastern Illinois University to junk status ratings, while the other two kept a higher standing.

The moves came in the middle of a continued budget stalemate in Illinois. The state hasn’t found a complete spending plan since July 2015. Many of these schools are starting to take in less money from the state government.

Moody’s says the five junk status schools are seeing their liquidity values weaken with less funding. They say better support from Illinois is needed for credit ratings to improve, but things can become worse if enrollment and net tuition revenue continue to decline.

The service just finished a 90-day review of all seven schools.  

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